My biggest mistake was letting a mutual fund(s) handle my $$$ after I got burned out during the dot.com bubble. I've lost $$$ daytrading, but only a fraction of what those professional MMs cost me. I' got back into trading about 6 months ago, and I have been impressed with the new selection of firms and tools available to non-prop traders. I'm using IB. One discipline I need to maintain... knowing when to quit. Winning or losing. Something about my ability to pull the trigger changes as I get up or down to much $$$. I seem to be good until about $1000 gain and $200-300 loss and I start feeling a little different as I'm watching the market. Honestly, I start making bad decisions, but I'm not sure why. My wife suggested I take a few days off after the wonderful trading on RIMM on Thursday. I stayed out today, and I definitely feel better. I really didn't miss anything, and had fun playing golf this afternoon. I'm new around ET, but I have really enjoyed reading and learning from you folks. Thanks RJ ...
My trading blunder was short calls around an earning report. Charts indicated a strong resistance that had held for six months. With earning better than expected that resistance became a support and the stock never looked back. Had to take losses....Stock was RIMM. I recommend not trading around events or earning announcements with short calls or puts. Better to be long and take a loss using position sizing discipline, if feel strongly... Wiseowltx
Ignoring my profitable but boring stock method to continue losing my money on my futures method. Think I've finally kicked that habit. Especially after the great money I've made in the last few months. Money is a good reinforcer. Now I seek excitement outside the market and keep the trading boring.
Not placing a stop on a stock that gradually, very slowly, drifts down day after day. Those gradual drifts down will kill you. If you don't like the feel it is better to just get out.
Going short AMGN about year 1990 and holding the position as the price increased. I remember getting a margin call that time. Maybe I learned the importance of stopping losses then so it is actually a good thing.
Being so cocky that after 7 years of profitable trading, I threw caution out the window and invested 10% of my hedge fund in CYGT. Within months, the stock quintupled and I felt like even more of a genius, but then the long gradual downtrending, a chart pattern I like to call "The Crow" because it picks away at your account, began. Eventually was forced to add to my position in the company to keep it afloat (in order to give me more time to sell my shares) pushing the position to nearly 1/3 of fund assets. Miraculously the company has survived, I managed to sell all my unrestricted shares for pennies on the dollar but it's a lesson learned as to how dangerous it is to invest in Penny Stocks, especially illiquid ones at that.
my biggest blunder was shorting amzn prior to it's earnings report earlier in the year because i thought it was priced for perfection. the market closed on that day and i went to take a piss, thinking that the report should be out 10 minutes or later after the close. when i came back, amzn was up 12%, i doubled down after hours. for awhile it didn't move, then i tripled down. amzn finally started falling and i was a few hundred from pulling even. then amzn started rising again. i thought to myself amzn would surely go up less the next day since afterhours, it's less efficient than market hours. so i quadrupled down on amzn and left the computer. next day, amzn jumps up 27% and i hoped that the next day would be much better. NOPE. next day, amzn jumped another 11%. I cut my losses there and lost 20% of my account. Lesson: dont play earnings